Output Management: The Nirvana Strategy

18
Apr
2012

Robert C. Mattern

In working with law firms for the past 20 years, I have seen the revolution.  There was a time when single-purpose copy machines were just plugged into an outlet and that was the end of the story.  But those days have long passed.  Today, there is a vast array of multi-functional devices (MFDs) that copy, scan, fax, print, act as a portal into your document management system, and are the conduit for your cost recovery system. In conjunction with the growth of features available on these MFDs, there has been an explosion in the placement of standalone printers--both local and networked--in the legal environment.

It should not come as a surprise, then, that the overall volume of output (copies, prints and scans) in the legal community is increasing at a rate well over 10% per year, where the vast majority of this growth is transpiring in the areas of print and scan.

This brings up two (2) key opportunities for firms inclined to increase workflow productivity and cost efficiency.  The first area of opportunity comes as a result of situating your firm with the optimum configuration for multifunctional and standalone devices; the second opportunity derives from addressing law firm output from a cost recovery viewpoint.

The Optimum Configuration
When asked, “What is the best configuration for my copiers and printers?” my response depends upon three, equally important factors: physical layout, culture and cost recovery strategy of the particular law firm.

It is important to first define “optimum” in the context of a printer and copier configuration in a legal environment. This optimum configuration is one which allows the end users of an organization to have convenient access to color and black & white output in a manner which also simultaneously prioritizes cost-effectiveness and workflow efficiency.

Looked at solely considering the two factors of cost effectiveness and unit features, the “nirvana” of configurations is to send as much output to MFD units that have color and black & white capabilities and as little as possible to local and network printers which tend to be more expensive.  The optimum output, however, can be influenced by the culture of the firm (e.g. everyone is accustomed to having their own printers) and physical layout of the firm’s offices.  Based upon any firm’s unique floor plan, sometimes, there is little choice as to where MFD units are placed.  At the same time, the firm’s cost recovery strategy is an area that is often not taken into consideration in these discussions but can have a major financial impact overall and even a much larger financial impact than the decision as to where or to what type of device the firm’s attorneys and staff send their output to be printed.

Physical layout
One of the most popular and efficient layouts being implemented in law firms today is the “pod.” In a pod layout, there are a small number (often 1 or 2) of secretaries supporting 4 – 6 attorneys and 1- 4 paralegals. From an output viewpoint, the secretaries are supported by a mid-range, multi-functional device with both b&w and color capabilities which handles all their copying, printing and scanning; additionally, there is typically a secondary device for special media. Even if your office is not configured in this arrangement, the basic tenets are still applicable and provide a few keys points for general consideration:

• Define output needs by workgroup or area--not by individual.
• Allow access to low cost business color and scanning capabilities.
• Make sure there is output capability for special media such as envelopes and labels that is not necessarily a multi-functional unit.

Culture  
Any change in a firm’s culture can be particularly tough, and this axiom is no less the case when it comes to the use of copy equipment and MFDs.  No one argues with saving money, but old habits die hard.  If the firm’s attorneys and staff are long accustomed to having their own output device due to prior practices by the firm, then reconfiguring output more efficiently will require having to implement a more gradual implementation strategy.

In these types of situations, it is critical to have upper management support as well as a 1-5 year implementation plan depending upon the age and capabilities of your current equipment fleet. This upper management support will usually be fostered after they see the financial impact and positive benefits that a firm wide plan can deliver.

The initial step in this plan is a detailed assessment of the firm’s current fleet and financial commitments. The second step is a financial analysis that lays out the cost per copy based upon current volumes. From an implementation viewpoint, the firm can begin by weeding out the higher priced units – which will typically be the older models that are being kept in place because they are “paid for.”  Don’t be surprised to learn that these “paid for units” are the most expensive output devices you have in your fleet. In the interim, begin to allow users to have access to MFDs that have color, scan and print capabilities.

What should happen is that the end users will migrate to the higher speed, increased capabilities of the multi-functionals. This “migration” will be dependent upon how many current features the end users have available at their local printers.  Based upon this migration, the firm can then begin to minimize the placements of local and network printers when the opportunity arises (such as equipment refreshes, leases expirations, etc.).

Cost Recovery      
An analysis of output management can also be the conduit for your cost recovery strategy.  With economic pressures continuing to affect law firms, now more than ever is the time to look for ways to reduce firm overhead whenever possible and refocus your firm’s cost recovery strategies.

To that end, it is critical to have a detailed, implementable plan to capture and recover costs in the copy, print and scan areas for both black & white and color. Don’t rely upon antidotes regarding what certain clients will pay or not pay for; don’t accept comments like “scans don’t cost us anything” or the conclusion from that false premise, “so it is not cost effective to worry about them.” Gather and analyze the information, benchmark and quantify the data, get upper management buy-in, develop a plan to capture and recover these costs from your clients, and improve your firm’s overall net billable realization.

If necessary, an outside consultancy may be an excellent method to provide the objective data your firm needs to improve cost recovery without burdening the firm with a long term addition to payroll’s overhead. Another benefit to this is that an outside consultancy is ideally poised as an outsider—and thus outside intradepartmental politics--to provide the unbiased data supporting changes in a firm’s workflow—and, thus, culture.

In summary, if you haven’t developed a firm wide plan on output and the contracts that support this area, this is an ideal time to do so. Firms are much more open to cost-reduction ideas and different ways of getting things done. Many firms are planning moves and laying out new space. These are all prime opportunities to implement new ways of doing things. If done right, your firm can improve workflow, reduce firm overhead, and increase net billable realization—and reach output management nirvana.